I just wanted to comment on this because I go to University of Nevada and our wack counterpart UNLV does still adhere to the brothel law. It is not a myth or a rumor. No sororities or frats have official houses because there is still a brothel law in nevada and UNLV and UNR are not in cities that allow brothels.

Why would a brothel law prevent fraternity houses?

Unless you can actually cite a statute or ordinance, I'm calling it a myth.